Companies recognize the power of social media in marketing. They often request influencers and brand ambassadors to sign a contract agreeing to promote their products or services.
A brand ambassador and influencer are terms used interchangeably in the marketing world as they both involve using a public figure's audience to generate sales through brand awareness. After they agree to take on the role, they sign an influencer contract or a brand ambassador agreement.
While the two contracts generally achieve the same goal, some key differences exist that may drive a company to prefer entering into one agreement over the other.
For instance, an influencer works with a brand for a short duration and may not have used the product before they signed the contract.
On the other hand, a brand ambassador is an individual who already uses the product and has established a relationship with the brand.
Understanding the differences and similarities between the two business documents will help you acquire the proper contract for your brand. We will explain the meaning of each document, compare an influencer and a brand ambassador, and list the pros and cons of each type of contract.
What Is An Influencer Contract?
An influencer contract is a legally binding document that a company and an influencer agree to sign outlining the terms of their business relationship. This document puts the parties' responsibilities, rights, and expectations in writing.
The influencer contract provides clear guidelines and guarantees a professional and beneficial relationship between you and the influencer. Key elements included in the contract are: \
- Names of both parties entering the agreement
- Details of the influencer's obligations
- How long the influencer will promote the products and services
- The rights granted to use and distribute the content created
- Clause preventing the influencer from promoting a competitor's brand
- Payment terms, structure, and amount
More often, an influencer may not be a consumer of your product, but they can use their reputation to create brand awareness for their audience. For example, if you own a vegan-friendly food company, you can request a vegan blogger with five thousand followers to sample your snack and post a one-time, daily, or weekly review on their platform.
Start your Influencer Contract now
What Is a Brand Ambassador Agreement?
A brand ambassador agreement is a legal document that a business and an influential social figure sign allowing them to become the face of the company's brand. The agreement outlines the partnership terms over a specified period and designates the person as the official brand representative.
In the agreement, you must define the responsibilities you would like the ambassador to take on, such as attending events, creating social media content, or using their reputation to promote your brand.
In exchange, the brand ambassador specifies the compensation they would like to receive, including free products, monetary payments, and discounts. Other aspects covered in the brand ambassador contract include exclusivity with competitors, termination conditions, confidentiality, and consequences for breach of contract.
Start your Brand Ambassador Agreement now
Influencer Vs. Brand Ambassador
Companies seeking to grow and leverage their business in the digital age cannot overlook the role influencers and brand ambassadors play.
An influencer has a dedicated following and significant online presence and has established themselves as an authority in a specific niche. Their followers trust their recommendations, and companies use that unique quality to grow their brand.
Conversely, brand ambassadors are public figures or celebrities who serve as the representatives of a company's brand for a longer period. The person you choose should be someone who values and uses your product and can passionately promote it.
Influencers and brand ambassadors play a crucial role in creating brand awareness and boosting sales despite their differences. The following table compares the two and gives you a clearer picture of what makes each role unique.
| Influencer | Brand Ambassador | |
|---|---|---|
| Relationship | Short-term collaborations | Long-term partnership |
| Content creation | Influencer driven | Company-guided |
| Audience | Diverse and extensive | Targeted and engaged |
| Engagement | Promotion and content creation | PR activities, events, and launches |
| Brand relationship | Less formal as it is based on campaigns | More formal as it involves the embodiment of the brand |
| Compensation | Per post or projects-based | Fixed contract |
| Endorsement | Can work with multiple brands | May have exclusivity with the brand |
Pros And Cons of Influencers and Brand Ambassadors
According to Oracle research on influencer marketing, 37% of consumers trust the influencers or brand ambassadors they follow more than a company's brand. In addition, 28% of consumers learn about new brands and products through influencers.
To choose the right public figure to leverage on these statistics, you must consider the pros and cons of signing a contract with an influencer vs. a brand ambassador. Let's look at the benefits and drawbacks of each.
Influencer Pros and Cons
Pros
- A large and engaged influencer following enables you to increase visibility.
- Influencers are known to be relatable and authentic, and followers trust their recommendations.
- You benefit from unique and diverse promotional material.
- Flexibility as the contract is often based on a campaign basis.
Cons
- You may have limited control over how the influencer creates the content surrounding your brand.
- If you are a small or struggling brand, it might be expensive to collaborate with influencers with a larger audience.
- The impact is short-term as their influence usually fades off after the campaign ends.
- Risk your brand image if an influencer encounters a PR crisis.
Brand Ambassador Pros and Cons
Pros
- A brand ambassador closely aligns with a brand's image and values creating a stronger connection with the target audience.
- You have more control over the brand messaging and content.
- Long-term relationships enable consistent representation and stronger brand loyalty.
- It can be cost-effective when done on a long-term basis compared to a per-campaign basis with influencers.
Cons
- The brand ambassador you choose may not have the same extended reach as an influencer.
- Long-term commitment requires ongoing careful management to ensure a productive partnership.
- Returns may be challenging to quantify since the ambassador performs various tasks for a longer duration.
- The brand ambassador's reputation may become adversely affected, increasing the risk of your brand image being perceived negatively.
Final Thoughts: Which Is Best?
In the end, both types of agreements can be beneficial, depending on what kind of effect you are looking for on your brand.
An influencer contract and a brand ambassador agreement enable you to formulate clear expectations and safeguard both parties’ interests. We can assist you in protecting your brand's image using our free influencer and brand ambassador contract templates, which are professionally drafted and customizable to your needs.
Helpfsul Resources:
Oracle - 37% of Consumers Trust Social Media Influencers Over Brands
Companies recognize the power of social media in marketing. They often request influencers and brand ambassadors to sign a contract agreeing to promote their products or services.
A brand ambassador and influencer are terms used interchangeably in the marketing world as they both involve using a public figure's audience to generate sales through brand awareness. After they agree to take on the role, they sign an influencer contract or a brand ambassador agreement.
While the two contracts generally achieve the same goal, some key differences exist that may drive a company to prefer entering into one agreement over the other.
For instance, an influencer works with a brand for a short duration and may not have used the product before they signed the contract.
On the other hand, a brand ambassador is an individual who already uses the product and has established a relationship with the brand.
Understanding the differences and similarities between the two business documents will help you acquire the proper contract for your brand. We will explain the meaning of each document, compare an influencer and a brand ambassador, and list the pros and cons of each type of contract.
What Is An Influencer Contract?
An influencer contract is a legally binding document that a company and an influencer agree to sign outlining the terms of their business relationship. This document puts the parties' responsibilities, rights, and expectations in writing.
The influencer contract provides clear guidelines and guarantees a professional and beneficial relationship between you and the influencer. Key elements included in the contract are: \
- Names of both parties entering the agreement
- Details of the influencer's obligations
- How long the influencer will promote the products and services
- The rights granted to use and distribute the content created
- Clause preventing the influencer from promoting a competitor's brand
- Payment terms, structure, and amount
More often, an influencer may not be a consumer of your product, but they can use their reputation to create brand awareness for their audience. For example, if you own a vegan-friendly food company, you can request a vegan blogger with five thousand followers to sample your snack and post a one-time, daily, or weekly review on their platform.
Start your Influencer Contract now
What Is a Brand Ambassador Agreement?
A brand ambassador agreement is a legal document that a business and an influential social figure sign allowing them to become the face of the company's brand. The agreement outlines the partnership terms over a specified period and designates the person as the official brand representative.
In the agreement, you must define the responsibilities you would like the ambassador to take on, such as attending events, creating social media content, or using their reputation to promote your brand.
In exchange, the brand ambassador specifies the compensation they would like to receive, including free products, monetary payments, and discounts. Other aspects covered in the brand ambassador contract include exclusivity with competitors, termination conditions, confidentiality, and consequences for breach of contract.
Start your Brand Ambassador Agreement now
Influencer Vs. Brand Ambassador
Companies seeking to grow and leverage their business in the digital age cannot overlook the role influencers and brand ambassadors play.
An influencer has a dedicated following and significant online presence and has established themselves as an authority in a specific niche. Their followers trust their recommendations, and companies use that unique quality to grow their brand.
Conversely, brand ambassadors are public figures or celebrities who serve as the representatives of a company's brand for a longer period. The person you choose should be someone who values and uses your product and can passionately promote it.
Influencers and brand ambassadors play a crucial role in creating brand awareness and boosting sales despite their differences. The following table compares the two and gives you a clearer picture of what makes each role unique.
| Influencer | Brand Ambassador | |
|---|---|---|
| Relationship | Short-term collaborations | Long-term partnership |
| Content creation | Influencer driven | Company-guided |
| Audience | Diverse and extensive | Targeted and engaged |
| Engagement | Promotion and content creation | PR activities, events, and launches |
| Brand relationship | Less formal as it is based on campaigns | More formal as it involves the embodiment of the brand |
| Compensation | Per post or projects-based | Fixed contract |
| Endorsement | Can work with multiple brands | May have exclusivity with the brand |
Pros And Cons of Influencers and Brand Ambassadors
According to Oracle research on influencer marketing, 37% of consumers trust the influencers or brand ambassadors they follow more than a company's brand. In addition, 28% of consumers learn about new brands and products through influencers.
To choose the right public figure to leverage on these statistics, you must consider the pros and cons of signing a contract with an influencer vs. a brand ambassador. Let's look at the benefits and drawbacks of each.
Influencer Pros and Cons
Pros
- A large and engaged influencer following enables you to increase visibility.
- Influencers are known to be relatable and authentic, and followers trust their recommendations.
- You benefit from unique and diverse promotional material.
- Flexibility as the contract is often based on a campaign basis.
Cons
- You may have limited control over how the influencer creates the content surrounding your brand.
- If you are a small or struggling brand, it might be expensive to collaborate with influencers with a larger audience.
- The impact is short-term as their influence usually fades off after the campaign ends.
- Risk your brand image if an influencer encounters a PR crisis.
Brand Ambassador Pros and Cons
Pros
- A brand ambassador closely aligns with a brand's image and values creating a stronger connection with the target audience.
- You have more control over the brand messaging and content.
- Long-term relationships enable consistent representation and stronger brand loyalty.
- It can be cost-effective when done on a long-term basis compared to a per-campaign basis with influencers.
Cons
- The brand ambassador you choose may not have the same extended reach as an influencer.
- Long-term commitment requires ongoing careful management to ensure a productive partnership.
- Returns may be challenging to quantify since the ambassador performs various tasks for a longer duration.
- The brand ambassador's reputation may become adversely affected, increasing the risk of your brand image being perceived negatively.
Final Thoughts: Which Is Best?
In the end, both types of agreements can be beneficial, depending on what kind of effect you are looking for on your brand.
An influencer contract and a brand ambassador agreement enable you to formulate clear expectations and safeguard both parties’ interests. We can assist you in protecting your brand's image using our free influencer and brand ambassador contract templates, which are professionally drafted and customizable to your needs.
Helpfsul Resources:
Oracle - 37% of Consumers Trust Social Media Influencers Over Brands
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